Tech Start-Up Busted By AG James For Swindling Investors Out Tens Of Millions Of Dollars

Cardis Enterprises Falsely Claimed it Could Cut Costs for Small Businesses

  New York Attorney General Letitia James today announced she has secured default judgments in a securities fraud lawsuit against a host of entities and individuals associated with Cardis Enterprises International, Inc. for defrauding investors out of at least $30 million.

“Individuals who sell false promises and commit fraud will be held responsible for their misdeeds,” said Attorney General Letitia James. “We will continue to seek justice for small business proprietors who fall victim to the greed of those intent on breaking the law. New Yorkers can rest assured that my office will always fight to hold companies that aim to defraud investors and tarnish the name of honest businesses accountable for their lies and deceitful actions.”

Cardis, a now defunct Long Island-based technology startup, claimed to possess patented and proprietary technology that would make low-value credit card transactions less expensive for merchants. Historically, low-value credit card transactions have posed a problem for merchants because they include a fixed fee — regardless of the size of the transaction — which has had the effect of severely depressing margins. But Cardis raised tens of millions of dollars from investors in stock sales and loans through a steady drumbeat of false representations, including: 1) that it was on the verge of monetizing its technology through partnerships with prominent companies and 2) an initial public offering (IPO) or buyout of Cardis was on the horizon. 

In fact, many of Cardis’ purported partnerships did not advance beyond preliminary discussions, and there was never an IPO or buyout ever actually on the horizon. Cardis even failed to maintain basic books and records, making the notion of an IPO or buyout impossible.

In December 2018, the New York Attorney General’s Office filed suit against Cardis and company personnel Aaron Fischman, Stephen Brown, Steven Hoffman, and Seth Rosenblatt for participating in the fraudulent marketing of Cardis to investors. The complaint further alleged that, while Cardis was raising significant investor funds, Fischman was fraudulently diverting much of the proceeds to enrich himself, family members, and his favored charities. Additionally, the complaint alleged that Lawrence Katz — Cardis’ in-house attorney — aided in Fischman’s theft and diversion of investor funds from the company’s principal bank account, which was an Interest on Lawyer Account (IOLA) in the name of his law firm.

Last week, Attorney General James secured default judgments against Cardis and a number of Cardis-related entities, including Choshen Israel LLC, a company controlled by Fischman. Attorney General James also secured default judgments against a number of Fischman’s relatives, including Nina Fischman, Rafaela Fischman, Alexander Fischman, Anne Shimanovich, and Ethel Weissman — all of whom were personally enriched through Fischman’s fraud.

Prior to filing the lawsuit, the New York Attorney General’s Office entered into an assurance of discontinuance with Cardis’ then-current Chief Executive Officer Jonathan Nierenberg. Under the assurance of discontinuance, Nierenberg agreed to cease working for Cardis (or any affiliated entity) and to refrain from participating in any business activities related to Cardis, except for the winding down of the company. As part of his settlement with the New York Attorney General’s Office, Nierenberg incurred a monetary penalty of $100,000 and was barred from participating in the securities industry for five years. 

The case remains ongoing with several motions pending, including a motion for leave to amend the complaint to re-plead claims against Brown (who was previously dismissed from the case) and the remaining defendants. 

The investigation of Cardis was prompted by investor complaints to the Investor Protection Bureau in the Office of the New York Attorney General. Those with information about possible investment fraud are encouraged to submit a complaint online. Additionally, for those who wish to report fraudulent conduct without compromising their identity, the Office of the New York Attorney General launched a secure whistleblowing system — the N.Y.A.G. Whistleblower Portal — that allows for the simple and secure transmission of information and two-way anonymous communication.

Team Ritchie - Trump is STILL trying to build his wall

Team,

We know how chaotic the news cycle is right now. Such is life in the Trump era.

 

But as House Democrats grapple with how best to hold this lawless president accountable, we can’t forget that the Trump administration is still trying to erect a ridiculous wall on our southern border -- and they want to use funds intended for military projects and schools to do it. So much for Mexico paying for it?

 

We can’t let the Trump administration get away with using our tax dollars for a border wall that nobody wants. They’re counting on us being too distracted to notice. Please sign our petition today to show them that you‘re paying attention.

 

Donald Trump is still obsessed with a vanity project that only serves to appease the xenophobic faction of his base -- and it’s up to us to speak out against this border wall. Sign our petition today to let the Trump administration know where you stand.

-- Team Ritchie

Paid for by Ritchie Torres for Congress

EDITOR'S NOTE:

Here is another candidate running for the 15th Congressional District who can't wait for 2020 (if elected) to fight Donald Trump in his second term as president. Why is candidate Torres not trying to put a Democrat in the White House?

Links have not been put up because they lead to donations.

Michael Blake for Congress - Does He Want to Fight President Donald Trump in 2020

The following came from Michael Blake for Congress

I’ll make this short and sweet: I’m asking to keep up the fight against Donald Trump. In the last few weeks, we’ve seen this dangerous president: -- Obstruct justice and coerce staffers to avoid testifying -- Tell two foreign governments to tip the election to his favor -- Intimidate and threaten the whistleblower who called him out Enough is enough.  I called for impeachment months ago -- but the evidence has never been more clear. We need leaders who are willing to speak truth to power. Will you elect a Congress that will stop at nothing to hold Trump accountable?   Onward,   Michael Paid for by Michael Blake for Congress Editor's Note: We question why candidate for congress Michael Blake wants to hold President Trump accountable after the 2020 election, and there is no reference to electing a Democrat as President, What is Michael Blake trying to tell us, Any reference to donations were deleted.

THREE BRONX BROTHERS SENTENCED TO PRISON IN SEX TRAFFICKING OPERATION; PROMISED WOMEN JOBS AS DANCERS IN MUSIC VIDEOS, THEN FORCED THEM INTO PROSTITUTION

 Bronx District Attorney Darcel D. Clark today announced that three Bronx men who are brothers have been sentenced to prison and must register as sex offenders after pleading guilty to Sex Trafficking and Kidnapping of women they lured with promises of video dancer jobs only to force them to be prostitutes. 

 District Attorney Clark said, “These defendants ran a brutal prostitution business. They preyed on teenage girls and young women, luring them with promises of a glamorous job and then holding them captive as prostitutes. Now they have been held accountable for demeaning and debasing their victims.” 

 District Attorney Clark said Mijsach Thompson, AKA “ATM Billz,” 21, of Melrose Avenue, was sentenced to seven and a half years in prison and 10 years post-release supervision after pleading guilty to two counts of Sex Trafficking, second-degree Kidnapping and Criminal possession of a Firearm; Mizraim Thompson, AKA “Racked Up Rally,” 22, of Melrose Avenue, was sentenced to five years in prison and six years post-release supervision after pleading guilty to Sex Trafficking and second-degree Kidnapping; and Cordell Cooke, AKA “K, Kooli,” 29, of Melrose Avenue, was sentenced to eight years in prison and eight years post-release supervision after pleading guilty to two counts of Attempted Sex Trafficking. All three defendants must register with the state Sex Offender Registry.

The investigation began in April 2017 when one of the victims went to a Bronx hospital and told authorities she had been held captive by Mijsach Thompson and Cordell Cooke. The victim said she had been recruited to be a dancer in a music video, but when she arrived at the apartment she was kept there and forced to have sex with men who saw her advertised on the now-defunct website Backpage. During that time, she was choked by Cooke as well as raped by Cooke and Mijsach Thompson and subjected to other acts of violence, as were two other victims. There were numerous other victims identified in their prostitution enterprise.

District Attorney Clark thanked Anthony Scoma of the New York City Department of Correction; and Detective Judith Moreno and Analyst Anastasia Clark of the New York City Police Department’s Human Trafficking Team, under the supervision of Lieutenant Christopher Sharpe, Sergeant Faoud Zahirudin, Captain Thomas Milano, and Inspector James Klein, Commanding Officer of the Vice Enforcement Division, for their work on the investigation.

MAN INDICTED FOR POSSESSING FORGED CHECK AND STEALING $40,000 FROM ELDERLY BRONX WOMAN

Defendant Used Forged JPMorgan Chase Check; Withdrew Funds From Several TD Bank Locations

  Bronx District Attorney Darcel D. Clark today announced that a man has been indicted for possessing a forged a check and stealing $40,000 from an 85-year-old Bronx woman’s bank account. 

District Attorney Clark said, “The defendant allegedly stole thousands of dollars from the victim by using a bogus check and possessing the victim’s forged signature. The elderly victim had to go through a terrible ordeal after realizing she was missing $40,000 from her bank account. We will prosecute anyone who preys on our vulnerable, elderly community members.” 

District Attorney Clark said the defendant, Daniel Brown, 29, of Saint John’s Avenue, Hicksville, N.Y., was arraigned today on third and fourth-degree Grand Larceny, Petit Larceny, second-degree Criminal Possession of a Forged Instrument, and first, second and third-degree Identity Theft, and third, fourth and fifth-degree Criminal Possession of Stolen Property before Bronx Supreme Court Justice Margaret Clancy. The defendant is due back on December 18, 2019. 

According to the investigation, on February 8, 2018, the defendant stole $40,000 from an 85-year-old woman who resides in the Bronx. The defendant allegedly stole the funds by using the victim’s JPMorgan Chase account number, her name, address and supposed signature on a forged check. Brown deposited the check into his personal TD Bank account. Between February 9 and 11, 2018, the defendant went to a teller at five different bank locations and allegedly withdrew the funds. Brown also created an online checking account using the victim’s information. The defendant was arrested on April 25, 2019.

District Attorney Clark thanked Bronx DA Detective Investigator Louis Zanieri and Assistant District Attorney Jeannette Rucker, Chief of Support Staff Training and Professional Development, for their assistance. 

An indictment is an accusatory instrument and not proof of a defendant’s guilt. 

DE BLASIO ADMINISTRATION CRACKS DOWN ON E-CIGARETTE SALES TO MINORS WITH NEW LAWSUIT AGAINST 22 SELLERS

  Mayor de Blasio and Acting Corporation Counsel Georgia M. Pestana today announced that New York City has filed a federal lawsuit against 22 national online e-cigarette vendors for selling their products to underage New Yorkers in an effort to combat the surging use of e-cigarettes by minors. The complaint alleges the online retailers don’t have age verification systems in place and market their addictive goods to minors in violation of City law.

“The kids of New York are the pride of our city, but to these companies, they’re just a source of profit. Preying on minors and hooking them on a potentially lethal, lifelong nicotine addiction is unconscionable,” said Mayor Bill de Blasio. “This lawsuit sends a message: we will do whatever it takes to protect our kids and the health of our city.”

“By selling their addictive and dangerous products to residents under 21 years of age, these defendants have violated a local law which was implemented to stem the epidemic of vaping among young residents and to prevent a new generation from being addicted to nicotine,” said Acting Corporation Counsel Georgia M. Pestana. “While the City Department of Health warns of a sharp rise in vaping among middle and high school students, defendants are targeting their products to these young people, further undermining the public health. We’ve asked the Court to require these retailers to comply with the law and pay damages towards the costs of abating the crisis of underage e-cigarette use within the City.”

“E-cigarette products threaten over a decade worth of progress in fighting nicotine use among kids,” said Health Commissioner Dr. Oxiris Barbot. “We don’t want to lose another generation of young people to Big Tobacco. These products are dangerous and we urge anyone who vapes to stop now.”

A joint investigation conducted by the New York City Sheriff’s Office and the New York City Law Department during July and August 2019 focused on the age verification practices of national online retailers and revealed that City residents under the age of 21 were able to freely access the websites of the companies named in the lawsuit and purchase e-cigarette products in violation of Local Law 94 of 2013.

Many of the websites did not use age verification services, which utilize databases of government records to verify the identity and age of purchasers before transactions can be completed. In many cases, purchases went through even though the buyers indicated that they were younger than 21. A number of the defendant companies have been previously cited by the Food and Drug Administration for illegally selling to minors.

New York City has faced the public health crisis caused by tobacco products for many years. Over the last decade, the City has seen a surge of e-cigarette use, especially by minors, even as rates of use of traditional cigarettes by both adults and youth in the City have consistently declined.

As recently as 2017, 1 in 6 New York City public high school students reported having used e-cigarettes within the past month, according to the City Department of Health. That number has likely climbed even further over the last two years in light of the dramatic increase in e-cigarette use nationwide. Preliminary results from a 2019 survey released just last month indicate that 27.5% of high school students nationwide are now current e-cigarette users.  In 2018, 1 in 15 (7%) of New York City public middle school students reported having used e-cigarettes within the past month.

Online e-cigarette retailers, including those named in the lawsuit, target their sales to young people by offering products that taste like candy, children’s breakfast cereals or sugary beverages.

The City has taken extensive action to prevent and discourage the use of e-cigarettes among minors. Retailers are prohibited from selling e-cigarettes and related products to those younger than 21 years old. Additionally, a separate license is required to sell e-cigarettes, and use of e-cigarettes is prohibited in all places where smoking is prohibited, including schools, parks, and many workplaces. Additionally, pharmacies are no longer allowed to sell any tobacco or e-cigarette products.

Literacy and education of the dangers of e-cigarettes is key to the City’s prevention efforts. Last week, The Department of Health and Mental Hygiene launched a bilingual, multi-platform digital media campaign—including Instagram, Snapchat, Twitter, YouTube, Hulu, Facebook, and Google search—to educate teens about the dangers of e-cigarettes. The fast-paced videos, which will run until the end of the year, alert young people to the dangers of nicotine addiction and vaping products, including the presence of toxic chemicals.

Demonstration at 2500 Williamsbridge Road Against Proposal for Building Use

  In the closed building behind the protesters they say a proposal for a drug clinic is planned. The corner building located at 2500 Williamsbridge Road has been closed for a while, and the sale of the building is being handled by Exit Realty (on the sign in the window). 

Local residents complain that there is a school right across the street, and they do not want children to have to pass a drug dispensary to and from school with unsavory characters in and outside of the building. 

The provider is Carnegie Hill which runs such a program in Manhattan. Recently Carnegie Hill tried and failed to purchase a doctors office on East Tremont Avenue (in Throggs Neck) across the street from the Community Board 10 office. 2500 Williamsbridge Road however is in Community Board 11 on the north side of Pelham Parkway.

The provider must have a public hearing with the community, generally at a community board meeting. While Carnegie Hill had a meeting with the Community Board 11 Health Committee it was not a public hearing, and no notice went out to the public stating that the meeting would be a public hearing. However according to OASAS (Office of Alcoholism and Substance Abuse Services) the state run agency that licenses such providers, it could be said that this provider has met one meting requirement, which was verified by the CB 11 District Manager who also said that the board is trying to set up a public hearing on the site.

Where do the local elected officials stand on 2500 Williamsbridge Road?

State Senator Alessandra Biaggi, I was told has come out against the proposal.

Assemblywoman Nathalia Fernandez has also come out against the proposal.

Councilman Mark Gjonaj has been relatively silent on the proposal. I was told the owner of the realty company putting together the deal was at one time Assemblyman Mark Gjonaj's Chief of Staff.  

Above - PS 89 is across the street from 2500 Williambridge Road,

Below - Different people joined the protest as the day went on.

Team AOC -Will you share your thoughts with us?

Before you know it, 2019 will be over — which means our organizing program is making critical preparations to mobilize the community, get people off the sidelines, and fight for our common progressive ideals.

But before we do that, we want to make sure you have a voice in the process. Alexandria is building a movement for the people, and by the people — which means we need to be sure we’re doing everything we can to include your values in this fight.

Will you take our 2020 priorities survey today and help us build an inclusive, working-class movement to take back this democracy?

Take the Survey

This campaign began on the doorsteps of New York’s 14th, and our roots in the past will define our path to the future. By centering the experiences of people who our democracy has left behind, we can finally solve the structural injustices of this country, and make sure everyone has a seat at the table.

Thanks for your help. It really does matter.

Pa'lante,

Team AOC